Collection Papers

Collection papers refer to the documents exchanged between banks during the process of collecting payment for an export transaction. When an exporter uses the documentary collection method for payment, the exporter’s bank (remitting bank) sends the collection papers to the importer’s bank (collecting bank). The collection papers typically include the draft (bill of exchange) drawn by the exporter on the importer, the commercial invoice, and other relevant shipping and financial documents. The collecting bank presents the collection papers to the importer and facilitates the payment process, ensuring that the payment terms specified in the draft are met before releasing the documents to the importer.